Valeo sales growth slows on U.S., China auto production dip

PARIS (Reuters) - French auto parts maker Valeo (VLOF.PA) said revenue growth slowed to 3 percent in the first quarter, held back by a strong euro and a contraction in Chinese and U.S. car production.

FILE PHOTO - A sign with the logo of the auto parts maker Valeo is pictured on media day at the Paris Mondial de l'Automobile, October 2, 2014. REUTERS/Benoit Tessier/File Photo

After jumping 12 percent last year, revenue rose to 4.917 billion euros ($6 billion) from 4.767 billion, the Paris-based company said on Wednesday. Currency effects cut sales by 5.4 percent as dollar-zone revenues lost value in euro terms.

“Organic revenue growth will accelerate sharply over the rest of the year,” said Chief Executive Jacques Aschenbroich, citing the company’s order intake.

Valeo is well positioned for an industry push into electrified and autonomous vehicles. But its shares have fallen some 10 percent this year and 18 percent from a May 2017 peak, as development costs ate into immediate profits.